ISLAMABAD : The Pakistan Industrial & Traders Associations Front chairman Mian Nauman Kabir has said that massive fall of rupee value continued to harm the economy, as the cost of deals done by the businessmen with their foreign buyers has increased manifold due to unprecedented plunge of local currency against dollar.
Besides increasing exports and controlling imports the government will have to take administrative measures, as a large demand of cash dollars are seen in the market. He said that the rupee has dropped by 2.9 percent or Rs4.62 against the dollar during last couple of months.
Mian Nauman Kabir, in a joint statement with senior vice chairman Nasir Hameed and vice chairman Javed Siddiqi appreciated the positive development related to the imports, which have now started decreasing since the last financial year followed by the government’s initiative of imposing regulatory duties.
PIAF Chairman urged the government to control volatility of rupee against the US dollar, as the industrial revival and economic growth is not possible without stability of local currency.
He said that Pakistani rupee continued its downward slide against the US dollar, moving in record low range of Rs167-168, having no sign of recovery, despite the fact that Pakistan’s Current Account Deficit has reduced by 78 percent owing to lower imports and better inflows.
Mian Nauman Kabir said that the CAD fell to $2.97 billion during fiscal year 2019-20 while the import bill fell by 19 percent to $44.57 billion during this period but rupee continued to sink.
He said that sharp depreciation of rupee shows that Pakistan is again moving towards a trade deficit regime, which might jack up the current account deficit yet again. He said that the inflows of workers’ remittances also grew by 6.4 percent to $23.12 billion during fiscal year 2019-20 which should have a positive impact on dollar-rupee exchange value.
